Financial Review
This description of financial performance was prepared based on the Company's Financial Report which was presented in accordance with the Statement of Financial Accounting Standards (PSAK) generally accepted in Indonesia for the year ended 31 December 2017. The financial report has been audited by the Satrio Bing Eny & Rekan Public Accounting Firm (member of Deloitte Touche Tohmatsu Limited) with a fair opinion in all material matters, the financial position of PT Waskita Beton Precast Tbk as of 31 December 2017, as well as its financial performance and cash flow for the year ended on that date in accordance with Financial Accounting Standards in Indonesia.
Discussion of the Company's financial performance is presented by taking into account the explanation in the notes to the Financial Report from the external auditor as an inseparable part of this Annual Report.
Financial Position Report
Until the end of 2017, the Company managed to record an increase in assets of 8,63% to IDR 14.919,55 billion. Liabilities as of December 31 2017 were recorded at IDR 7.602,89 billion, an increase of 20,13% compared to 2016 of IDR 6.328,77 billion. Changes in the value of assets and liabilities as of 31 December 2017 caused the equity value to decrease slightly by 1,20% to IDR 7.316,66 billion at the end of 2017 when compared to IDR 7.405,50 billion in 2016.
This is mainly due to corporate action in the form of share buybacks (Shares Buyback) which was carried out in 2017 as management's effort to increase investor confidence in the company's solid fundamental performance in the future.
As a Precast, Ready Mix, Quarry, Construction Services and Posttension Precast Concrete manufacturing company with a production capacity of 3,7 million tons/year with 9 plants, 73 batching plants and 5 quarries, as well as 6 marketing areas spread throughout Indonesia, PT Waskita Beton Precast Tbk (WSBP) is able to target the internal and external markets of various infrastructure projects in Indonesia, where the majority of projects supplied are toll road projects.
In the future, the company wants to continue to increase the value of external projects. Several external projects that have been obtained include the Trans Sumatra Toll Road Project, Project Refinery Development Master Plan (RDMP) Refinery Unit (RU) V Pertamina Balikpapan which is a collaboration with Hyundai and Modernland Apartment Development (Modernland Group) in Jakarta Garden City.
In 2019, the company initiated collaboration with foreign companies operating in Indonesia. The company received an order for Tetrapod products for the Coastal Protection Project in Singapore, and is currently preparing it MoU with a Malaysian company, namely Reaplite. This collaboration will continue in the future join operation overseas projects, one of which is the implementation of the LRT project in the Philippines which is currently in the tender process which is being participated in by PT Waskita Karya Tbk (WSKT).
Throughout 2019, the Company did not have any matters that had the potential to significantly affect business continuity. This is based on conditions where there are no matters that have the potential to significantly influence the Company's business activities as long as corporate governance and risk mitigation processes are carried out in accordance with agreed commitments, and there are still large growth prospects for the precast industry and ready mix as one of the main supporters in accelerating infrastructure development throughout the country.
Assumptions regarding the absence of matters that have a significant impact on the Company's business continuity in 2019 can be seen from the increase in the value of new contracts amounting to IDR 7,03 trillion. This was supported by the acquisition of external contacts of 63,2% compared to 2018 of 36%. In value, the increase in external contracts reached 83,01% or IDR 2,43 trillion in 2018 to IDR 4,44 trillion in 2019.
Company management is optimistic that 2020 will be a more productive year.
Vasaka Building, Jl. MT Haryono Kav, No. 10A, Cawang, East Jakarta 13340
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